List Three Different Ways That a Tax Return May Be

question 17

Essay

List three different ways that a tax return may be selected for an audit.

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Definitions:

Total Budgeted Sales

The total sales revenue a company anticipates to earn over a specific period as estimated during the budgeting process.

Cash Sales

Transactions in which goods or services are exchanged for immediate payment.

Sales Budget

An estimate of the expected total sales revenue and selling expenses of a company within a specified future period.

Credit Sales

Transactions that allow the buyer to purchase goods or services on credit, whereby payment is deferred to a future date.